MATIC starts a bull rally, but is Polygon zkEVM at risk?

  • MATIC was up by 1.5% in the last 24 hours. 
  • Polygon zkEVM’s network activity dropped in the last few days. 

Polygon [MATIC] witnessed a trend reversal in the last few hours as its bear rally seemed to have ended.

It was interesting to note that while the trend changed, Polygon’s Layer 2 and Polygon zkEVM faced an issue that might have a negative effect on the network’s usage. 

Polygon bulls are finally here

CoinMarketCap’s data revealed that MATIC bears were dominant in the market, which resulted in a price drop of over 6% in the last seven days.

However, the token’s value increased by more than 1.5% in the last 24 hours. At the time of writing, MATIC was trading at $0.9874 with a market cap of over $9.7 billion, making it the 16th-largest crypto.

Because of MATIC’s highly volatile price action, the token remained a topic of discussion in the crypto space, which was evident from its consistent high Social Volume.

However, despite this, MATIC’s Weighted Sentiment went into the negative zone, meaning that bearish sentiment was dominant in the market. 

Bearish sentiment around Polygon increased

Source: Santiment

AMBCrypto’s analysis of MATIC’s daily chart revealed that the uptrend might last longer, as the MACD displayed a clear bearish advantage in the market.

Polygon’s Chaikin Money Flow (CMF) registered a sharp downtick, indicating that the possibility of a price decline was high at press time.

Nonetheless, MATIC’s price rebounded from the lower limit of the Bollinger Bands — a sign of an upcoming bull rally. 

MATICUSDT 2024 03 24 11 15 27MATICUSDT 2024 03 24 11 15 27

Source: TradingView

Polygon zkEVM is having trouble

While MATIC’s price action remained volatile, its L2, zkEVM, recently encountered an issue. As per an official tweet, zkEVM Mainnet Beta faced an issue with its sequencer due to an L1 reorg.

This issue only impacted Polygon zkEVM and does not impact the PoS blockchain, Polygon CDK, or any chain that has deployed using Polygon CDK.

Read Polygon’s [MATIC] Price Prediction 2024-25

Since zkEVM was affected, AMBCrypto checked Artemis’ data to find out how the L2’s network activity was doing. As per our analysis, after a sharp rise, the L2’s Daily Active Addresses dropped.

This also took a toll on the L2’s Daily Transactions, which dropped since the 21st of March. 

Screenshot 2024 03 24 at 11.19.20 AMScreenshot 2024 03 24 at 11.19.20 AM

Source: Artemis

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